Should You Invest Globally?

Feb 28, 2017 | Blog, Wealth Management

If you have a diverse investment portfolio of domestic stocks, bonds, and even hard assets or other classes, you’re off to an excellent start for retirement or growing your wealth. Even so, many are surprised or reluctant to hear that they’re missing out on a large opportunity if they’re solely invested in the United States.

By diversifying globally, you have a chance to spread those nest eggs into baskets across the world, while also seeking further opportunities to grow your wealth.

Diversification benefits

Although you may not understand all the factors surrounding the global economy, diversifying this way can have significant benefits for your portfolio. Consider speaking to a trusted advisor, or tilting your portfolio towards diversified international stocks. There isn’t a “magic” number of the percentage you should allocate to any investment (because everyone has unique needs and goals) – but it’s a smart idea to base this on your appetite for risk, and the likelihood that you’ll actually stick to your investment plan when international stocks are thrown into the mix.

Just like everything else in life, it can be worth it to expand your horizons.

The U.S. Doesn’t Always Win

Just like in the recent Olympic competitions, the U.S. won’t win the gold medal every single time. A wise investor will realize that despite their penchant to invest in domestic stocks, they may not be the top winner year after year. For instance, in the last 12 years (since 2015), the best-performing stock market has been one outside the U.S. Even though you may miss some bigger American wins by concentrating your investments there, you’ll also avoid big searing losses, and possibly enjoy better overall results.

At LexION Capital, we help our clients invest globally by scouring the world for the best investments for each bespoke portfolio. If you’d like to learn more, contact us today.


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